What’s Next for Hemp Inc (OTCMKTS:HEMP)

One stock that has been very
interesting from a trading standpoint over the past 6 weeks is Hemp Inc (OTCMKTS:HEMP). Fresh off the
signing of the Farm Bill – and all the strong advancements for hemp and CBD
therein – shares of the stock predictably soared higher in December, but have since
faded. Now, the question is about what comes next.

Helping to seek out an answer
to that question, the company just announced a joint venture between Hemp, Inc.
and retail store Hemp Healthcare, in Dolan Springs, Arizona, to sell high-end
cannabidiol (CBD) and hemp-based products. According to the release, “Hemp,
Inc. announced in July 2018 that the company had entered into a joint venture
with Dolan Station to sell high-end CBD and Hemp, Inc. products as well. The
global demand for CBD and hemp products at Dolan Station supported the opening
of Hemp Healthcare.”

Hemp Inc (OTCMKTS:HEMP) was
founded in 2008. The company has a reputation as one of the more controversial
enterprises, even by the standards of either the OTC or the cannabis patch,
which certainly paints a picture.

In any case, the company is
making strong strides toward reshaping its image as a legitimate emerging
leadership play in the industrial hemp space.

Hemp Inc understands its
mission to be a provider of “green solutions that help make the world a better
place to live. We support products that are eco-friendly, organic, healthy and
solutions that replace many petroleum-based products.”

“Hemp Inc.’s wholly owned
subsidiary Industrial Hemp Manufacturing, LLC purchased the largest
decortication plant in North America, which is located in Spring Hope, North
Carolina. The plant is housed in a 70,000,000 square foot warehouse on 9 acres.
The company will start producing fiber, loss circulation materials (LCM) and
absorbents from kenaf and later from hemp.”

That narrative continues
forward to include the concept that “Hemp, Inc. will produce a product for
drilling rigs called “lost circulation material” (LCM), which is used for
maintaining the seals when drilling for water, oil, gas, and any other liquid
or gas. This product alone is capable of producing millions of dollars in
revenue since some of the largest oil companies in the world will be our
primary customers.”

“Eventually, the company will produce fiber materials for the paper and fabric industries, and other industries that utilize materials from hemp to make products such as plastics, building materials, health, and beauty related products and more.” In other words, the concept of “diversified applications for hemp as an industrial material” is the paramount idea.

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As noted above, HEMP just
announced a joint venture between Hemp, Inc. and retail store Hemp Healthcare,
in Dolan Springs, Arizona, to sell high-end cannabidiol (CBD) and hemp-based
products.

The chart shows basically flat
action for the stock over the past week. What’s more, the stock has witnessed a
pop in interest, as transaction volume levels have recently pushed 16% above
the average volume levels in play in this stock over the longer term.

“The joint venture between
Hemp, Inc. and Hemp Healthcare will be a monumental stride for not only the
storefront but also for Hemp, Inc., as we make our way into the tourism
market,” said Hemp, Inc. CEO, Bruce Perlowin. “The consistent passing of
individuals through this town, on their way to one of the most popular
attractions in the United States, will only increase the awareness of high-end
CBD and hemp-based products, including our own brand.”

Currently trading at a market capitalization of $21.87M,
HEMP has a stash ($1.4M) of cash
on the books, which must be weighed relative to about $1M in total current
liabilities. One should also note that debt has been growing over recent
quarters. HEMP is pulling in trailing 12-month revenues of $400K. In addition,
the company is seeing major top-line growth, with y/y quarterly revenues
growing at 248.3%. This may be a very interesting story and we will look
forward to updating it again soon.
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Disclosure: we hold no position in $HEMP, either long or
short, and we have not been compensated for this article.

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